In response to the Cuban government's recent announcement of a more adaptable official exchange rate, both the dollar and the euro have seen declines in their informal values on the island. As of 8:00 a.m. local time on Thursday, the average selling price for the dollar is 322 CUP, a decrease of three pesos from the previous day. Similarly, the euro has dropped to 330 CUP, down by two units compared to Wednesday. Meanwhile, the Freely Convertible Currency (MLC) remains unchanged at 265 CUP, the same rate as on December 18.
The government aims to regulate the exchange market amidst an environment where the informal currency market prevails, setting real prices for goods consumed by the population. Although the specifics and implementation date of this initiative remain unclear, it is intended to address the dominance of the informal market where actual economic conditions are determined.
Exchange Rate Update for December 19, 2024 - 8:26 a.m. in Cuba:
- USD to CUP according to elTOQUE: 322 CUP.
- EUR to CUP according to elTOQUE: 330 CUP.
- MLC to CUP according to elTOQUE: 265 CUP.
Efforts to Control the Currency Market
Cuba's authorities are striving to introduce a flexible official exchange rate aligned with market supply and demand, hoping to challenge the informal market's hold on the Cuban peso's true value. This strategy is part of a partial dollarization of the economy impacting key sectors like wholesale and retail commerce, tourism, and foreign trade. The move will also allow cash dollars to be used in areas such as pharmacies, airports, and agricultural exporters.
Despite the purported monetary unification after the CUC was phased out, Cuba continues to operate with multiple currencies: the dollar, euro, MLC, and the devalued Cuban peso. This situation highlights the regime's failure to meet the demand for foreign currency, leaving the informal market as the primary price regulator.
Paradoxically, Prime Minister Marrero has announced measures to "dedollarize" economic sectors without providing implementation details. In an economy plagued by inflation and previous policy failures, the regime seeks to regain control in a landscape where informal market rules largely dictate the economic reality for Cubans.
Exchange Rates for Available Euro and US Dollar Bills to Cuban Pesos (CUP)
US Dollar (USD) to Cuban Peso (CUP), according to December 19 exchange rates:
1 USD = 322 CUP.
5 USD = 1,610 CUP.
10 USD = 3,220 CUP.
20 USD = 6,440 CUP.
50 USD = 16,100 CUP.
100 USD = 32,200 CUP.
Euros (330 CUP per euro):
1 EUR = 330 CUP.
5 EUR = 1,650 CUP.
10 EUR = 3,300 CUP.
20 EUR = 6,600 CUP.
50 EUR = 16,500 CUP.
100 EUR = 33,000 CUP.
Impact of Currency Market Changes in Cuba
How has the informal market affected currency values in Cuba?
The informal market in Cuba significantly influences currency values by establishing real exchange rates based on supply and demand, impacting the economy and pricing of consumer goods.
What is the Cuban government's strategy to control the currency market?
The Cuban government plans to implement a flexible official exchange rate that reflects market dynamics, aiming to compete with the informal market's influence on currency value.
What currencies are currently used in Cuba despite monetary unification?
Cuba continues to use multiple currencies: the US dollar, euro, MLC, and the depreciated Cuban peso, highlighting the challenges faced in achieving true monetary unification.